Discussion:
I. Business' Environmental Responsibility: The Market Approach
a. Protecting the Environment: An overwhelming consensus exists about the self-interested and prudential reasons for protecting the natural environment-- humans have a right to be protected from undue harm.
i. What is the best means for achieving this goal? Are efficient markets or government regulation the most appropriate means for meeting the environmental responsibilities of business? Each of these two approaches has significant implications for business.
ii. From one perspective, if the best approach to environmental concerns is to trust them to efficient markets, then the responsible business manager simply ought to seek profits and allow the market to allocate resources efficiently.
1. By doing this, business fills its role within a market system which, in turn, serves the greater overall (utilitarian) good.
iii. On the other hand, if government regulation is a more adequate approach, then business ought to develop a compliance structure in order to insure that it conforms to those regulatory requirements.
iv. Defenders of the market approach contend that environmental problems are economic problems that deserve economic solutions.
v. Fundamentally, environmental problems involve the allocation and distribution of limited resources.
1. Whether we are concerned with the allocation of scare non-renewable resources such as gas and oil, or the earth's capacity to absorb industrial by-products such as CO2 or PCB, environmental challenges can be addressed through efficient markets.
Q: Which position do you support? Market-Based or Regulatory-Based. What ethical principle(s) is your position based on? If you do not think this is an ethical issue, why not?